1. General Rules
1.1. These rules have been formulated based on the principles of fairness, openness, and justice to regulate trading behavior associated with leveraged digital currency tokens and to protect the legitimate rights and interests of investors.
1.2. These rules serve as a benchmark for Tokocrypto’s ETF token trading service, which includes the trading of leveraged tokens and other related operations performed by investors.
1.3. These rules are only applicable to ETF tokens traded on Tokocrypto. In cases not covered by these rules, the Tokocrypto Terms of Use and Tokocrypto’s other relevant rules shall apply.
2. Risk Control
2.1. Tokocrypto reserves the right to monitor the risk ratio of users' accounts in real-time.
2.2. Tokocrypto reserves the right to take appropriate measures based on changes in the risk ratio. Risk control measures that may be used include but are not limited to:
- Introducing a "maximum holdings" limit, which limits the maximum amount of ETF token holdings a single user can have;
- Tokocrypto will adjust the maximum position limits for users based on the current market risk.
- Disabling ETF token trading and other operations for some high-risk users.
3. Limit Order Price Range Rules
The price range for limit orders for ETF tokens is ± 90% of the latest net asset value (NAV) of any given ETF token. Limit orders that exceed this range will not be executed. For example, if the current net asset value (NAV) of the ETF token XUP is 10, then the XUP/USDT limit order price range will be 1-19.
4. Market Order Rules
When placing market orders, please note that you can only use the [Amount] option to specify your order quantity. ETF Tokens do not support the [Total] option when placing market orders.
5. Maximum Position Limit
ETF Tokens |
Max. Position Limit (USDT)* |
ADADOWN |
2,500 |
ADAUP |
2,500 |
BNBDOWN |
5,000 |
BNBUP |
5,000 |
BTCDOWN |
5,000 |
BTCUP |
5,000 |
DOTDOWN |
5,000 |
DOTUP |
5,000 |
ETHDOWN |
5,000 |
ETHUP |
5,000 |
XRPDOWN |
5,000 |
XRPUP |
5,000 |
*Maximum Position Limits (USDT)
Tokocrypto imposes a maximum allowable position limit (USDT) on ETF tokens. A buy order will be rejected if the total of purchase quantity and current position exceeds the maximum position limit.
For example, User A’s maximum position limit for ADAUP is 2,000 USDT and the last price is $2, User A’s current position is 10,000 ADAUP, i.e. 20,000 USDT equivalent. The maximum quantity User A can now purchase is 50.05 ADAUP, i.e. 1,001 USDT equivalent. The buy order will be rejected if User A attempts to buy 10,000 ADAUP.
Notes:
- When the Last Price fluctuates sharply due to market movements, it is possible that the estimated max position limit will be different from the calculation based on the current last price.
- Tokocrypto will adjust the maximum position limits for users based on the current market risk. Users who have held positions that exceed the maximum position will not be able to continue placing buy orders.
6. Rebalancing Rules
6.1. Leveraged Tokocrypto ETF token positions are only rebalanced when necessary, which is controlled by Tokocrypto’s proprietary algorithm. The goal is to maximize the correlation between leveraged Tokocrypto ETF tokens and the underlying margin positions without having to worry about liquidity.
6.2. The target leverage range for ETF tokens is maintained between 1.5x and 3x. The actual target leverage multiplier is not made public and changes constantly. This way, the outside world is unable to predict the target leverage multiplier maintained for ETF tokens or when rebalancing will occur, thereby reducing pre-trading and manipulation.
7. Additional Rules
7.1. Tokocrypto provides information distribution, supervision, and risk control services for ETF token trading. Tokocrypto does not provide any guarantee of returns or obligation of capital preservation for users who carry out ETF token transactions on the Tokocrypto platform. Investors should be fully aware of the greater risks associated with ETF token services. Additionally, they should self-assess possible losses and voluntarily participate based on confirming that the risks are controllable and bearable.
7.2. The terms "exceed" and "less than" as mentioned in these rules do not include numbers, whereas "not exceeding", "no less than", "above", and "up to" include numbers.
7.3. These rules are formulated by the Tokocrypto platform and will be effective immediately upon dissemination to all platform investors. The same applies to amendments.
7.4. Tokocrypto platform holds the right to the interpretation of these rules.